Tariffs and Customs Terms T.1.120

Question 1

a principle that mandates World Trade Organization members to bind themselves to a reduction or removal of tariff barriers. Once a duty is “bound”, it may not be increased unless compensation is made.

Answer 1

tariff binding

Question 2

level of tariff higher than the existing tariff rate.

Answer 2

tariff ceiling rate

Question 3

refers to a list of schedules of articles with the corresponding rules of duty to be paid to the government upon their importation.

Answer 3

tariff classification

Question 4

a Philippine government agency that decides whether or not dumping duty must be imposed, and how much. It conducts research on tariff issues, sets national policy on tariff imposition, and monitors implementation of the Tariff and Customs Code of the Philippines.

Answer 4

Tariff Commission

Question 5

a situation in which tariffs on finished goods are high, those on semi-processed goods moderate, and those on raw materials non-existent or too low.

Answer 5

tariff escalation

Question 6

a Harmonized System category or classification to which a traded commodity belongs.

Answer 6

tariff heading

Question 7

under a system called tariff quotas, it means that all quantitative import restrictions on particular goods are removed and converted into Customs duties corresponding to their ad valorem equivalents.

Answer 7

tariffication

Question 8

reduction in tariff duties to boost international trade.

Answer 8

tariff liberalization

Question 9

a particular row specified in the Harmonized System, to which a traded commodity, code number, classification, tariff heading number, rate of duty, tariff preference, belong.

Answer 9

tariff line

Question 10

a quota system imposed by a government on imported goods, under preferential treatment, in the form of duty-free entry or lower rate of duty

Answer 10

tariff quota system

Question 11

the rate of duty imposed on an imported article.

Answer 11

tariff rate

Question 12

restructuring of the Philippine Tariff System to make it responsive to constant economic changes in global trading patterns and technological progress.

Answer 12

Tariff Reform Program

Question 12

a Philippine government policy contained in several Executive Orders, which allow reduction of rate of duty on certain imported goods

Answer 12

tariff reduction scheme

Question 13

a comprehensive list of goods a country may import and the duties applicable to each product.

Answer 13

tariff schedule

Question 14

a product classification system used by the U.S. and published in the Tariff Schedules of the United States

Answer 14

Tariff Schedule of the United States

Question 15

the change in classification chapter or heading level of goods in the Harmonized System nomenclature.

Answer 15

tariff shift

Question 16

an import tax usually assessed at a flat rate, over and above the duties being assessed.

Answer 16

tariff surcharges

Question 17

the rates of duties imposed on the imported items. Those literally mean the duties being assessed

Answer 17

tariff walls

Question 18

a waterproof sheet or canvas that covers cargo.

Answer 18

tarpaulin

Question 19

a financial burden levied upon persons or property by the government for public purposes.

Answer 19

tax

Question 20

a term that means the goods are subject to tax

Answer 20

taxable

Question 21

pertains to the sale, barter, exchange, and/or lease of goods or properties, including transactions “deemed sale” and the performance of service for a consideration, all of which are subject to tax under Sections 100 and 102 of the National Internal Revenue Code of the Philippines.

Answer 21

taxable sale

Question 22

the tax base for the imposition of tariff rate. It is the dutiable value arrived at by multiplying the total Customs value with the applicable exchange rate.

Answer 22

taxable value

Question 23

the technique by which a taxpayer’s resorts to legal means to avoid paying the correct taxes.

Answer 23

tax avoidance

Question 23

a government policy of extinguishing a tax-payer’s obligation.

Answer 23

tax amnesty